Schaueffle Machines, Inc., has a project with the following cash flows. The company evaluates all projects by
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Question:
Schaueffle Machines, Inc., has a project with the following cash flows. The company evaluates all projects by applying the IRR rule.
Year. Cash Flow
0. −$27,700
1 11,700
2 14,700
3 10,700
a. | What is the IRR for this project? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) |
b. | If the appropriate interest rate is 18 percent, should the company accept the project? |
Related Book For
Fundamentals of Financial Management
ISBN: 978-0324597707
12th edition
Authors: Eugene F. Brigham, Joel F. Houston
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